FMDQ Weekly Report
COMMENTARY on the Foreign Exchange ( FX) market with data for the week- ending November 27, 2020. The table following the commentary show a month- onmonth turnover comparison for January through to October 2020 and 2019, respectively.
The Central Bank of Nigeria( CBN) intervened through its periodic supply of United States( US) Dollars in the FX market, offering a total of $ 100.00 million via the Secondary Market Intervention Sales ( SMIS) Wholesale Window on November 24, 2020
In the Investors’ & Exporters’ ( I& E) FX Window, the total value of trades for the week- ended November 20, 2020, was $ 0.54 billion, representing a decrease of 19.40% ($ 0.13 billion) from the $ 0.67 billion reported for the weekended November 13, 2020, bringing the total value of trades at the window to $ 34.54 billion
For the reporting week- ended November 27, 2020, the CBN official rate remained unchanged at $/ 379.00 for the thirteenth consecutive week
In the Bureau- de- Change ( BDC) market, the exchange rate rose by 12.00 to close at $/ 490.00 representing a 2.51% depreciation when compared to $/ 478.00 recorded in the previous week- ended November 20, 2020
Still for the week- ended November 27, 2020, the Naira depreciated at the I& E FX Window, gaining 4.42 to close at $/ 390.25 when compared to $/ 385.83 recorded the previous week, resulting in a spread of $/ 99.75 between the BDC market rate and I& E FX Window rate
Also, the spread between the BDC market rate and the CBN official exchange rate rose by 12.00 to close at $/ 111.00, indicating an increase of 12.12% from the spread of $/ 99.00 recorded in the previous week
In the FX Futures market, $ 398.07 million worth of FX Futures contracts were traded in twenty- three ( 23) deals, compared to the total of $ 40.33 million traded in eleven ( 11) deals and recorded the week- ended November 20, 2020
Also, the 53rd FX Futures contract, NGUS NOV 25 2020, matured and settled on FMDQ Exchange on Wednesday, November 25, 2020. The quotes for all 60 monthly contracts are published daily on FMDQ’S website and via FMDQ Group’s twitter handle @ FMDQ Group Dealing Member- Client Spot FX Market Turnover Report
For the week- ended November 20, 2020, trading activities in the Spot FX market between the DMBS and their clients stood at $ 569.65 million ( average daily turnover of $ 113.93 million), representing a decrease of 20.33% when compared to the $ 714.97 million ( average daily turnover of $ 142.99 million), recorded the previous weekended November 13, 2020
A review of trading activities in the Spot FX market amongst banks for the week- ended November 20, 2020, revealed a decrease of 68.56%, as a total turnover of $ 126.46 million ( average daily turnover of $ 25.29 million) was recorded against $ 402.21 million ( average daily turnover of $ 80.44 million) reported the week- ended November 13, 2020.